What Does a Bankruptcy Trustee Do?
Bankruptcy trustee (liquidation group) accounting is a branch of property trust accounting. In a bankruptcy case, the trustee (liquidation team) accepts the entrustment of the court to manage the property of the bankrupt enterprise, handle the sale and distribution of the bankrupt property, and is responsible for the entire set of accounting procedures for the operation of the bankrupt enterprise (if accepted). Including daily account processing and preparation of accounting statements.
Bankruptcy trustee accounting
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- Chinese name
- Bankruptcy trustee accounting
- Meaning
- Branch area
- Types of
- Trustee accounting
- Form
- Daily account processing and preparation of accounting statements
- Bankruptcy trustee (liquidation group) accounting is a branch of property trust accounting. In a bankruptcy case, the trustee (liquidation team) accepts the entrustment of the court to manage the property of the bankrupt enterprise, handle the sale and distribution of the bankrupt property, and is responsible for the entire set of accounting procedures for the operation of the bankrupt enterprise (if accepted). Including daily account processing and preparation of accounting statements.
- Bankruptcy trustee (liquidation team) accounting account processing
- After the company declares bankruptcy, the trustee (liquidation group) takes over the assets of the debt enterprise and is responsible for handling these assets, until the court is discharged from its responsibility. Since the takeover of assets, the trustee (liquidation group) has created fiduciary responsibility. When controlling the assets of a debt enterprise, the old account books will continue to be used under the supervision of the trustee (liquidation group). For reorganization cases that continued to operate during the reorganization of the enterprise, the old account will continue to be used, and it is more appropriate to use the original accounting system. If the old books are used, the business that occurred in the process of bankruptcy liquidation should be recorded according to the equation "trusted assets = trusted equity". Assets should be recorded at the original book value, not at the estimated realizable value, because the estimate of the realizable value at the time of application is subjective. Asset offsetting accounts are not used on the books, because asset offsetting accounts are not meaningful in liquidation cases, and account records should be simplified as much as possible. After taking responsibility for supervising property, the trustee (liquidation group) shall set up a liquidation profit and loss account to reflect the gains, losses and liquidation costs incurred during the bankruptcy liquidation process; any unrecorded assets or liabilities discovered by the trustee (liquidation group) Also credited to the account. In order to distinguish the original assets and liabilities included in the takeover of the property from the assets obtained and the liabilities incurred during the period of the trust, the assets and liabilities incurred by the (trustee) liquidation group during the period of the trust shall be added with the word "new" to the difference.
- If the liquidation period is long, the trustee (liquidation group) shall submit to the court written documents such as a statement of cash income and expenditure, a statement of changes in the equity of the receiver (not a profit statement), and a balance sheet.